One of the more serious dangers to peace and security in Latin America is the territorial dispute between Ecuador and Peru, which broke out into warfare in February-March 1995. In this monograph, Dr. Gabriel Marcella explores the critical historical and strategic dimensions of the conflict. He argues that unless this age-old dispute is settled amicably and soon, it could very well generate a more disastrous war in the future. Dr. Marcella proposes a basis for settlement and provides specific policy recommendations for the United States and the inter-American community.